$SPY lower following a big run yesterday after the Fed said that nothing had changed in the interest rate. In Europe the Euro-group chief said that the Russia aid for Cyprus is unlikely to happen, and that they got four days to strike a deal. As for US economic news the new jobless claims edged higher by 2,000 to a seasonally adjusted 336,000.

Now translating all that into real world literature.

This is it. A top is forming, and even though the chances of us testing the theory that we can blast higher and reach the 160.80 level. But until that happen, I still have to work with what we had last week as top which was the 156.70.

A lot of people talk to me about a news driven market, or stock, and I know that, but at the same  time the Fibonacci levels help me measure the move higher or lower. Sorry guys this is how I work. This is how it have been working for me, and this is how I will continue to work until I can’t get things right. At that point I will adapt to a new market condition.

$SPY 1st support is 154.29 2nd support 153.35 (just above the 23.6% Fibonacci Level) and 3rd is 152.38.

$SPY 1st target is 155.55, 2nd is 156.45, 3rd is 156.80.

Trade what you see not what you think.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind